By Kash Dosanjh, Managing Partner & Founder, Maison Lex | Updated June 2026 | 9 min read
Big changes are coming to the UK workplace. The Employment Rights Act 2025 is the biggest shake-up of employment law in a generation — and whether you run a business or work for one, it will affect you. It received Royal Assent on 18 December 2025 and is being rolled out in stages across 2026 and 2027, changing the rules on dismissal, sick pay, harassment, family leave and zero-hours working — but at different times.
Whether you are a business owner reviewing your contracts or an employee wondering about your rights, this guide explains what is changing, when it takes effect, and what you should be doing now to prepare. At Maison Lex, we are already helping clients across the UK get ready for these reforms.
In This Guide
- What Is the Employment Rights Act 2025?
- The Implementation Timeline at a Glance
- What Has Already Changed — April 2026
- What Is Coming Later in 2026 — October Onwards
- Unfair Dismissal — The Biggest Change, from January 2027
- Fire and Rehire — New Restrictions from 2027
- What This Means for Employers — Action Points
- What This Means for Employees — Your Stronger Rights
- FAQs
What Is the Employment Rights Act 2025?
The Act delivers a large part of the Government’s “Plan to Make Work Pay.” Rather than switching on all at once, the reforms are being introduced in phases so that employers and workers have time to prepare. Some measures took effect as soon as the Act became law, others arrived in April 2026, and the headline changes to unfair dismissal land in 2027.
It is worth understanding the phasing, because a change you read about in the news may not yet be in force. Important: many of the finer details still depend on government consultations and secondary legislation, so some dates may move.
The Implementation Timeline at a Glance
Here is how the key changes are currently expected to roll out:
| When | What changes |
|---|---|
| 18 Dec 2025 | Royal Assent — the Act becomes law; phased rollout begins |
| 6 April 2026 | Day-one Statutory Sick Pay; day-one paternity & unpaid parental leave; stronger whistleblowing protection; doubled collective redundancy award |
| 7 April 2026 | New Fair Work Agency established to enforce employment rights |
| October 2026* | Tribunal time limits extended 3 → 6 months; third-party harassment duty; restrictions on NDAs |
| 1 January 2027 | Unfair dismissal qualifying period cut 2 years → 6 months; compensation cap removed; fire-and-rehire protections |
| During 2027 | Guaranteed hours & shift notice; flexible working reform; enhanced family-leave protection; bereavement leave |
*Some October 2026 measures are listed by the Government as “no earlier than” that date, so exact timing may shift.
What Has Already Changed — In Force from April 2026
A significant wave of reforms came into force on 6 April 2026.
Key changes already in force:
- Statutory Sick Pay (SSP) from day one. The three-day waiting period has been removed, so SSP is payable from the first day of illness. The Lower Earnings Limit has also gone, extending sick pay to lower earners who previously did not qualify.
- Day-one paternity and unpaid parental leave. Employees no longer need a qualifying period of service before taking these forms of leave.
- Stronger whistleblowing protection for sexual harassment. Raising concerns about sexual harassment now counts as a “qualifying disclosure,” protecting workers from detriment or dismissal for speaking up.
- Higher penalties for failing to consult on collective redundancies. The maximum protective award has doubled from 90 to 180 days’ pay.
- Gender equality and menopause action plans (voluntary for now). Employers can publish these voluntarily, with this expected to become mandatory for larger employers in 2027.
Separately, the new Fair Work Agency was established on 7 April 2026 to strengthen enforcement of employment rights.
What Is Coming Later in 2026 — October Onwards
Further changes are expected from October 2026 (some are listed as “no earlier than” that date):
- Longer time limits to bring a tribunal claim. The deadline for most employment tribunal claims is set to increase from three months to six months, giving employees more time to seek advice and act.
- A duty to prevent third-party harassment. Employers will be expected to take all reasonable steps to protect staff from harassment by customers, clients and other third parties — not just colleagues.
- Restrictions on non-disclosure agreements (NDAs). Any clause that tries to stop a worker speaking out about harassment or discrimination is expected to become void.
Unfair Dismissal — The Biggest Change, from January 2027
This is the reform most employers and employees are watching.
From 1 January 2027, the qualifying period for ordinary unfair dismissal protection is set to drop from two years to six months. The Government originally proposed making this a “day one” right, but revised the plan to a six-month qualifying period following pushback in Parliament.
In practice, employees who start work from around July 2026 onwards would reach the six-month threshold and gain protection from 1 January 2027. On the Government’s own figures, roughly 6.3 million employees currently in the six-months-to-two-years window will become newly eligible to claim.
At the same time, the statutory cap on unfair dismissal compensation is being removed for ordinary unfair dismissal. Until now, an employee’s compensatory award has been limited to the lower of 52 weeks’ gross pay or a statutory maximum (reviewed each April). From 2027, that ceiling disappears — a significant change, particularly for higher earners.
If you have been dismissed and believe it was unfair, our specialist employment solicitors can assess your position and advise on your options.
Fire and Rehire — New Restrictions from 2027
Also from January 2027, dismissing an employee because they refuse a “restricted variation” to their contract — changes to things like pay, hours, holiday or pensions — will become automatically unfair in most cases, unless the employer is facing genuine, severe financial difficulty. The same protection is intended to catch “fire and replace,” where an employer dismisses someone and brings in another person to do substantially the same job on worse terms.
What This Means for Employers — Your Action Points
The two-year unfair dismissal window has, for many businesses, acted as a safety net. Once it shrinks to six months, getting recruitment, probation and performance management right early becomes essential. Practical steps to consider now:
- Review your probationary process. Make sure managers run genuine, documented performance reviews — not leaving issues until month 23.
- Train line managers. Fair procedure and clear record-keeping will matter far more once protection kicks in at six months.
- Audit your contracts and policies. Sick pay, family leave, harassment and grievance policies all need to reflect the new rules.
- Rethink any plans to change terms. With fire-and-rehire protections tightening, contract variations need careful handling and proper consultation.
Our employment law team for employers can help you get contracts, policies and processes ready before each deadline.
What This Means for Employees — Your Stronger Rights
For workers, the Act generally strengthens your position.
Your stronger rights at a glance:
- You may be able to claim unfair dismissal far sooner — after six months rather than two years from January 2027.
- You will have longer to bring a claim once tribunal time limits extend.
- You have earlier access to sick pay and day-one family leave.
- You are better protected if you raise concerns about harassment or discrimination.
If you are facing dismissal, a contract change you did not agree to, redundancy or workplace discrimination, it is worth understanding how these new rights apply to you. Our employment law team for employees can advise on your options — and if an exit is on the table, our settlement agreement solicitors can make sure any deal is fair.
Need Advice on the New Rules?
Whether the Employment Rights Act 2025 affects you as an employer preparing for the changes or as an employee wanting to understand your rights, do not wait until a problem arises. Getting advice early — on contracts, probation, dismissal or a settlement — can save time, money and stress.
Contact Maison Lex today to speak with one of our specialist employment solicitors UK-wide. We offer fixed-fee advice, fast turnaround, and a clear focus on getting you the best possible outcome.
Frequently Asked Questions
When does the Employment Rights Act 2025 come into force?
It received Royal Assent on 18 December 2025 and is being introduced in phases. Key measures took effect in April 2026, more are expected in October 2026, and the major unfair dismissal changes are due on 1 January 2027.
Is unfair dismissal now a “day one” right?
No. The original day-one proposal was replaced with a six-month qualifying period, expected to take effect from 1 January 2027.
Has the cap on unfair dismissal compensation really been removed?
The statutory cap on ordinary unfair dismissal compensation is set to be removed from 1 January 2027, which is particularly significant for higher earners.
Do these changes apply to small businesses?
Yes. The reforms apply to employers of all sizes, although some specific obligations (such as mandatory equality action plans) are aimed at larger employers.
I think I have been treated unfairly at work — what should I do?
Seek advice early. Time limits to bring a claim are strict, so the sooner you understand your position, the more options you are likely to have. You can contact Maison Lex for clear, practical guidance.
Written by Kash Dosanjh — Managing Partner & Founder, Maison Lex
Kash Dosanjh is a specialist employment solicitor and the founder of Maison Lex, a boutique UK employment law firm based in Coventry. Maison Lex is authorised and regulated by the Solicitors Regulation Authority (SRA No. 8013851). For advice on the Employment Rights Act 2025 or any employment law matter, contact us today.
Disclaimer: This article is for general information purposes only and does not constitute legal advice. Many measures under the Employment Rights Act 2025 remain subject to consultation and secondary legislation, so dates and details may change. Employment law is fact-specific — you should always seek independent legal advice tailored to your circumstances. Maison Lex (Dosanjh Legal Ltd) is authorised and regulated by the Solicitors Regulation Authority (SRA No. 8013851).
